Bursa Malaysia ends lower on weak sentiment

BURSA Malaysia ended trading at an intraday low to yesterday due to weak investor sentiment amid escalating geopolitical tensions in the Middle East, said an analyst.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 8.51 points, or 0.55%, to 1,542.53 from Friday’s close of 1,551.04.

Market breadth was negative with decliners leading gainers 993 to 230, while 374 counters were unchanged.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the key regional indices were also mostly lower, with persistent concerns over higher-for-longer US interest rates weighing on investor sentiment.

“On the domestic front, we anticipate short-term market sentiment to remain jittery amid uncertainty in global (economic) performance.

“Simultaneously, investors are advised to stay alert for bargain-hunting opportunities should there be a positive outcome from the ceasefire talks,” he told Bernama.

As such, Thong anticipates the FBM KLCI to remain in consolidation and trend within the 1,538-1,570 range for the week.

Meanwhile, Mohd Sedek Jantan, head of wealth research and advisory and designated portfolio manager at UOB Kay Hian Wealth Advisors, said the FBM KLCI’s performance reflected the ongoing selling pressure following the Middle East conflict.

He said the trend is expected to persist once the US market opens, driven by persistent inflationary pressures and escalating geopolitical tensions.

“Profit-taking activities are anticipated to continue throughout the week. While the crisis in the Middle East is not likely to significantly impact global equities, investors are expected to take a defensive approach.”